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Original poster

Inheritance and best thing to invest in

21 replies

40somethingJBJ · 03/12/2020 16:30

Hi all. My dad sadly passed away last week and I’m currently dealing with his estate. I’m sole beneficiary, and stand to inherit a substantial amount once the house is sold and bank accounts etc closed.

I’m disabled and currently receiving benefits, and I know some of these will stop once I get a lump sum, so I really need to work out what’s best to do with the money to get an income, as I don’t really want to be spending the capital on living expenses.

In total, there’ll be just short of £190k. I’m going to upgrade my car (12 years old and manual - I really need an automatic), plus some home improvements on my house, as I currently only have single glazing, but the remaining money I want to invest into something to provide an income of some sort.

I know interest rates are abysmal, so is property the best bet? Buy to let or holiday let? Or is there something else that would be better?

Any advice welcome. Thanks!

OP posts:

Original poster

40somethingJBJ · 03/12/2020 17:20

Hopeful bump :)

OP posts:

foxyfemke · 03/12/2020 17:23

I would speak with a financial adviser. Sorry for your loss.

Original poster

40somethingJBJ · 03/12/2020 17:24

Thank you.

OP posts:

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Fizbosshoes · 03/12/2020 17:32

V sorry for your loss.my Ddad died last year, although we're still waiting for his estate to be dealt with and distributed.
I think it's a good idea to see a financial advisor, I'm planning to see one when I know how much we will get from my inheritance.
I'd keep quiet about a BTL or holiday let on MN they seem v unpopular on here.

murbblurb · 03/12/2020 17:37

sorry for your loss.

BTL is about the only home for cash with interest rates being real-terms negative for years, but it is not without considerable risk. That risk is getting worse. Most one-property landlords with sense will be selling up when their current tenants leave - can't do it earlier even if you want to as evictions are now 18 months.

improve your house, yes. Buy a nearly new car (new ones just depreciate hugely), yes. Otherwise; pension and stock market, and both of those are financial adviser territory. Keep a year's expenses available even though it will produce negligible interest.

cracracatlady · 03/12/2020 17:59

You can get your inheritance put into a trust to protect your means tested benefits

ArnoldBee · 03/12/2020 18:02

If you are disabled and qualify for pip at the right rate you would be better off getting a car through motability.

CabinClose · 03/12/2020 18:04

Do you have a mortgage? The first thing would be to pay that off.

Original poster

40somethingJBJ · 03/12/2020 18:04

@cracracatlady

You can get your inheritance put into a trust to protect your means tested benefits

Would that not be classed as hiding money? Not expecting to get benefits as well, just want to make dad’s money work for me.

OP posts:

Original poster

40somethingJBJ · 03/12/2020 18:05

@ArnoldBee

If you are disabled and qualify for pip at the right rate you would be better off getting a car through motability.

Yes I go get mobility but I’d rather own a second hand car than give up my monthly PIP.

OP posts:

Original poster

40somethingJBJ · 03/12/2020 18:05

@CabinClose

Do you have a mortgage? The first thing would be to pay that off.

No mortgage or debt :)

OP posts:

cracracatlady · 03/12/2020 18:30

Would that not be classed as hiding money? Not expecting to get benefits as well, just want to make dad’s money work for me.

No it’s perfectly legal, there’s a trusts for disabled or vulnerable people. 190k might seem like a decent amount, but it’s only around 6/7 years salary. If a person can’t work and needs care or adaptions 190k would disappear very quickly.
I only know as I have a ds with a disability and my life insurance will go into a trust for him, per the solicitors advice when I was getting my will written

Original poster

40somethingJBJ · 03/12/2020 18:36

@cracracatlady

Would that not be classed as hiding money? Not expecting to get benefits as well, just want to make dad’s money work for me.

Ah ok. Is that not something my dad would’ve had to have written into his will though?

OP posts:

PragmaticPrinciple · 03/12/2020 18:42

I think you need to speak to a specialist adviser. I have no experience, but what about these people? www.disabilityrightsuk.org/getting-advice

Personally, I do not see why just because you are disabled you should see your Dad's inheritance replace state support, where an able-bodied person would see £190k as a passport to lots of perks.

See if you can put it into home improvements that will enhance your life and the value of your property. Or even move house.

PragmaticPrinciple · 03/12/2020 18:42

P.S sorry - meant to say - so sorry about your Dad.

Original poster

40somethingJBJ · 03/12/2020 18:45

Thank you. I had thought about moving house, as could really do with a bungalow, but I love where I live and there’s very few bungalows around here that ever come up for sale. There are several things I could do to my house to make my life easier though, so I might look into doing that.

OP posts:

thecognoscenti · 03/12/2020 18:46

Sorry for your loss, OP.

If you vary your entitlement under the Will so that instead of receiving it outright it goes into a trust, this will be classed as deliberate deprivation and won't work to protect the money from your means-testing.

Means-tested benefits are for the poorest and most vulnerable, really.

LionLily · 03/12/2020 18:51

Please consider talking to a specialist solicitor about setting up a trust. This may be the only lump sum you receive and you need to think about your future needs. Treat yourself by all means, but also protect yourself in case moving to a bungalow becomes a necessity rather than a choice, or perhaps in the future you might need a car with specialist adaptations to keep you mobile.
If invested with a low risk strategy this is unlikely to bring in 'big money' but you'd have some security.

LionLily · 03/12/2020 18:53

You are likely to lose ESA, but of course DLA and PIP are not means tested.

Mindymomo · 03/12/2020 18:54

Sorry for your loss. I lost my father in law in February and my husband and I inherited his house and savings. Rates for savings are really low at the moment, but we have put the maximum £20,000 allowance in 2 year isas, plus each doing 2 year fixed rate savings accounts, to make a little money. We’ve also put some money in premium bonds, where we know it’s down to chance if we win, but it’s hopefully safe there. Like you we are going to get a new car, maybe in the new year, as there’s no point at the moment , as we aren’t going anywhere.

thecognoscenti · 03/12/2020 18:57

Definitely get specialist advice from a qualified person. A financial advisor is what you need, really.

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